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A ROUNDTABLE DISCUSSION Advertising Section SPECIAL ADVERTISING SECTION NEW CHILD CUSTODY/SUPPORT LAWS How the changes affect divorcing couples HOWARD A. LONDON ALYSSA MOGUL ROBERT D. SEGAL TANYA J. STANISH Partner Partner Partner Senior Partner Beermann Pritikin Grund & Leavitt, P.C. Davis Friedman LLP Schiller DuCanto & Fleck LLP Mirabelli Swerdlove LLP amogul@grundlaw.com rsegal@davisfriedman.com tstanish@sdflaw.com halondon@beermannlaw.com 312-640-0500 312-782-2220 312-609-5526 312-621-9700 green 330 gold 723 Illinoisans ages 50 and older make tremendous contributions that improve our communities — their trailblazing efforts need to be noticed and recognized. Illinois divorce law is undergoing a multiyear overhaul. In January International Academy of Family Lawyers and has been recognized by 2016, new changes to child custody laws—now called parental the Leading Lawyers Network and Super Lawyers. That is why AARP Illinois and Crain’s Custom responsibilities—were introduced. Robert D. Segal is a partner at Davis Friedman LLP, a Chicago-based Media launched 50@50+ Illinois — recognizing FAMILY LAW. BUSINESS LAW. HONORING A second statute, whiOcNhE t oFIoRkM e TffHeAcTt DJuElLyIV 1E, RsSig BnOifiTHca.ntly altered the way firm exclusively practicing family law since 1946. Throughout his 30- those Illinoisans 50+ who disrupt aging, think courts allocate child-support payments. year legal career, he has represented business owners, investment outside the box, and make life better for all. bankers, medical professionals, attorneys and others operating at the Both of these changes in Illinois law were intended to create more pinnacle of their respective fields. He holds a bachelor’s degree in equitable outcomes for divorcing spouses and factor in modern economics with honors from the University of Pennsylvania and a law THOSE WHO Do you know an Illinoisan over 50 who should realities of dual-income families and shared parenting responsibilities. degree from Temple University. He’s a Fellow of the American Academy be recognized? Download a nomination form at of Matrimonial Lawyers, a frequent faculty member and lecturer to Crain’s Custom Media turned to four Chicago-based family law http://states.aarp.org/5050illinois and honor a legal and community organizations, and has been recognized by the attorneys to get their thoughts about how the new laws will affect Illinois Leading Lawyers and Super Lawyers. local unsung hero. divorcing couples with minor-age children. MAKE A Tanya J. Stanish is a senior partner with Schiller DuCanto & Fleck LLP, Howard A. London is a managing partner at Beermann Pritikin Nominations close on July 31, 2017. a family law firm with offices in Chicago, Lake Forest and Wheaton. As Mirabelli Swerdlove LLP, where he’s worked since graduating from a negotiator and litigator, she’s represented a wide variety of prominent the George Washington University Law School in 1978. In addition clients, and understands the desire to protect families’ and children’s Honorees in: Nonprofi t, Arts & Culture, Business, to traditional family law litigation, he advocates alternate dispute interests in complex divorce proceedings. An honors graduate of resolution methods—such as mediation and cooperative and DIFFERENCE Community Building, and Disruption will be DePaul University’s College of Law, she’s been consistently recognized collaborative law—to achieve fair settlements in an amicable and cost- selected. The honorees will be recognized this Fall effective way. He’s been recognized by The Best Lawyers in America, by Illinois Super Lawyers, The Best Lawyers in America, and the Leading Lawyers Network. She’s been named among the Top 100 Trial through a special section in Crain’s. the Leading Lawyers Network, and Illinois Super Lawyers. He’s been Lawyers, and The Top 25 National Women Trial Lawyers. named one of the Top 10 Civil Appellate Law attorneys in Illinois, and one of the Top 10 Family Law attorneys in Illinois. What prompted the changes to Illinois law? Alyssa Mogul is a partner with Grund & Leavitt, P.C., where she specializes in litigation. She’s a frequent speaker at professional Alyssa Mogul: Illinois is working to align more closely with federal events, including continuing education seminars for lawyers, and she mandates and national trends in family law. The new laws reflect teaches at various Chicago law schools. She’s an honors graduate of changes in and further encourage increased involvement of both the Chicago-Kent College of Law, where she received a certificate parents in their children’s lives after a divorce. The new laws also from the Litigation and Alternative Dispute Resolution Program. She’s a address a long-standing concern that looking at one parent’s income to NO PURCHASE NECESSARY. Legal residents of Illinois, 50 years and older. Fellow of both the American Academy of Matrimonial Lawyers and the set child support was unfair and not in line with the children’s needs. Ends 7/31/2017. See the Offi cial Rules for complete eligibility requirements, odds, and prize descriptions. Void where prohibited. Sponsor: AARP.A ROUNDTABLE DISCUSSION ADVERTISING SUPSPPLEECIMALE ANDTV ETROTI SCINRGA SIENC’TSI OCNHICAGO BUSINESS SPECIAL ADVERTISING SECTION Advertising Section allocate the decision-making in each category applying the ratio of the parents’ adjusted A NEW CHILD SUPPORT MODEL FACTORING IN BUSINESS INCOME to one parent solely or both parents jointly. net income to the stated child support Prior to the change in the law, both parents obligation for their income level. This had joint decision-making or custody, or one computation can be affected by the amount parent had “sole” decision-making or “sole “The new statute provides much more detail of parenting time. While this reduction may “Illinois is catching up with 39 other states custody,” collectively for all four categories. fairly reflect higher child-rearing costs of than before concerning how income from Now, the court can allocate the decision- the obligor’s significant parenting time, that have already adopted what’s known as making of the four categories separately. a business is to be calculated, and how there’s concern that parents will fight over the ‘income shares’ model for determining documents concerning the business may parenting time to get more (or pay less) in Howard A. London: For example, the father child support, rather than focusing on the child support. This approach considers the can be in charge of education, the mother in be obtained to determine the appropriate children’s best interests. income and allocation of parenting time of charge of health, and then both parents jointly amount of child support.” responsible for religion and extracurricular both parents.” RS: I prepared a spreadsheet to help my activities, or any other combination. clients whose cases were ongoing prior Regardless of who’s given the final say as to to enactment of the new law understand ROBERT D. SEGAL, DAVIS FRIEDMAN LLP a category, it’s usually beneficial to the child ALYSSA MOGUL, GRUND & LEAVITT, P.C. different scenarios and the implications of the and the parents’ relationship for the parents application of the old versus the new law and to consult each other and attempt to agree before making important decisions. holiday, summer and vacation time, right of first refusal and dispute the effect on the child support calculation, so Robert D. Segal: Illinois is catching up with 39 other states that have resolution provisions if the parents reach an impasse. we could plan and act strategically. already adopted what’s known as the “income shares” model for AM: Parenting time, which includes regular, holiday and vacation determining child support. This approach considers the income and schedules, is also divided between the parties in a way that makes the AM: The parenting plan provides the rules parents will follow. If the If a parent owns a business, what does he/she need to know regarding allocation of parenting time of both parents. By changing to this model, most sense for the children. parents cooperate and agree on a plan, the court will adopt it and the new child support statute? Illinois acknowledges the more nuanced reality of modern, dual- enforce it, so long as it serves the children’s best interests. income families and strives to ensure that children receive the same or The new law replaces the term “child custody” with the phrase HL: The new law defines how to compute “net business income” for approximate benefits they would have if their parents still were married. “allocation of parental responsibilities.” What’s the difference? HL: If the parents can’t agree on a parenting plan, the court will order purposes of calculating child support. The income may come from The old model was built on the presumption of one working spouse mediation and, if that fails, conduct a trial and fashion a parenting sole proprietorships, closely held corporations, partnerships, other making all the money and one non-working spouse providing all the HL: Previously, the term “custody” was often a fight waiting to plan for the parties. The new law encourages parents to agree on a flow-through business entities, and self-employment. The purpose is childcare. It was very black and white, and generally pretty unfair. happen—a zero-sum game where one parent was the winner and the parenting plan rather than to require the court to dictate one. to separate business expenses from personal expenses and reasonable other the loser. Married parents—equal in the eyes of the law (and to expenses from excessive ones. The law zeros in on three categories Under the parental responsibilities statute, what are the major the children and others)—became something more or less, depending RS: In my experience, one of the principal reasons married couples get of business expenses: accelerated depreciation, inappropriate or responsibilities to be allocated? on who “won” custody. A main goal of the new law is to diffuse the divorced concerns issues of control—emotional, financial or social. The excessive expenses, and personal expenses. These items can’t be used Tanya J. Stanish: Education, health, religion and extracurricular tension by focusing on child-rearing. There’s still the potential for imbalance can make it difficult for parents to agree on a parenting plan. to reduce income for child support purposes, even if they are allowed activities. The parents by agreement, or the court otherwise, can fighting over which parent gets to make decisions, but the hope is that Nonetheless, the new law’s requirement of a parenting plan sets the as deductible expenses on a tax return. parents will focus on sharing decision-making or expectation that parents find a way to jointly author allocating responsibilities consistent with the child’s what is effectively the blueprint for defining their best interest, without the distraction of the child responsibilities and roles for parenting and, most “custody” label. important, ensure their children’s overall health, safety and well-being. Robert D. Segal RS: The new terminology recognizes the fine-grain complexity of family life and parenting and puts How does the amount of parenting time with a child both parents on more equal footing. Words matter. affect child support calculations? The new model moves away from the outmoded idea that the responsibility of caring for a child is an Guidance AM: Both parents’ incomes are considered when absolute. It’s also less conducive to the implication determining child support, and each parent will that one of the parents—the non-custodial parent— Recent changes in family law indicate the legal system has begun to have a support obligation based on his or her is somehow the less caring or able parent. The prorated share of the child’s overall support. recognize the fine-grain intricacies of modern family life and parenting. changes in terminology are also designed to reduce In addition, when each parent has at least 146 This also means family law is becoming more detailed, more nuanced. conflict and litigation concerning children. overnights with a child per year (40 percent of Perceptive, experienced and informed, Robert Segal is the attorney annual overnights), a different calculation is used to who can help you navigate this new complexity. TS: Now, the language is neutral with the prospect apportion child support. A parent with at least 146 that both parents may be able to partake in the overnights per year pays the other parent less than Thoughtful. Thorough. Tough. decision-making and parenting of their child, he or she would if he or she had less parenting time. without having to feel that they won or lost a battle. Conceptually, the more time a parent spends with a child, the less money that parent is required to pay AM: It still means a determination is required to to the other, as the child is not living with the child assign decision-making and parenting time to support recipient as much. one or both parents. Unfortunately, to add to the confusion, while the new law removes the word TS: If the threshold’s achieved, the computation “custody,” there are other related laws affecting of child support becomes a multi-step formula families that are still in use and not modified by the which takes into account the costs of having legislature that continue to use the term “custody.” two households to support. The incomes of the respective parents and their parenting time are Under the new law, what’s a parenting plan? considered as part of that formula. TS: It’s the written agreement of the parents as HL: There’s a table that specifies a child support to who will make the decisions in the four major obligation figure based on the number of children categories (noted above) for the children, and when (one to six) and combined family “adjusted net Robert D. Segal 312.782.2220 rsegal@davisfriedman.com the children will spend their time with each parent. income” levels ranging from $775 to more than 135 South LaSalle Street Chicago, IL 60603 davisfriedman.com It includes many more details such as allocating $30,000 per month. Child support is computed byA ROUNDTABLE DISCUSSION ADVERTISING SUPSPPLEECIMALE ANDTV ETROTI SCINRGA SIENC’TSI OCNHICAGO BUSINESS SPECIAL ADVERTISING SECTION Advertising Section value of the benefi ts will be included in the knowledgeable about your fi nances, including CRAFTING A PARENTING PLAN DETERMINING CHILD SUPPORT business owner’s income for purposes of your family’s expenses. Understand there the calculation. are many ways to resolve your matter. And fi nd an attorney you feel confi dent with, who How is child support calculated if one has the skills to advance and resolve your “Sometimes, one parent may request “If the parents can’t agree on a parenting parent is voluntarily unemployed or case by settlement, mediation or litigation. that the court require his or her under- underemployed? Many attorneys specialize in one arena, but plan, the court will order mediation and, employed spouse to submit to a vocational it’s most cost-effective to fi nd one who has if that fails, conduct a trial and fashion a RS: In those cases, child support will be a track record in all of them in case your examination by an expert to determine calculated based on potential income. For divorce does not proceed as you hope parenting plan for the parties.” example, if a parent without good reason the amount of income the spouse could or plan. quits her/his million-dollar-a-year job to be earning.” fl ip hamburgers, the court can use that HL: Put your children fi rst and do your parent’s much higher potential income to utmost to work out any differences HOWARD A. LONDON, calculate her/his child support obligation. amicably, or at least civilly. Contested BEERMANN PRITIKIN MIRABELLI SWERDLOVE LLP Similarly, the court may be called upon to TANYA J. STANISH, SCHILLER DUCANTO & FLECK LLP court proceedings can irreparably harm address the situation when one parent has families, especially children, who often been out of the workplace for some time suffer collateral damage from their parent’s RS: Business-owning parents should remain aware that opposing but unreasonably refuses to become re-employed. The other parent person paying spousal support receives a benefi t for those divorce. Seek the advice and assistance of counsel will investigate not only their individual tax return, but will also will argue that by refusing to return to the workplace, she/he is not payments, and they’re taken into account when calculating child counsel who will prioritize the well-being of your children. look behind the tax return and delve into the various expense line items acting in good faith. This would form the basis for the court to impute support payments. to that parent her/his potential income for purposes of calculating What are some other changes outlined in the new laws? on the income statement of the business. This is done to distinguish between those claimed business expenses that are legitimate versus child support. HL: The new law also allows a deduction for spousal maintenance those that are personal in nature and hence subject to scrutiny. payable or actually paid to a former spouse pursuant to a court order. AM: Lawmakers have attempted to make the system easier to HL: The tougher cases, which are subjective for a court, include: where navigate ––with a statewide fi nancial affi davit, for example––and better AM: The new statute provides much more detail than before concerning a parent has been out of the workforce for years; has changed careers What advice do you have for couples with children who are suited to deal with the many varieties of families affected by the law. how income from a business is to be calculated, and how documents for good reasons, such as, for example, to pursue a passion; or is near contemplating fi ling for divorce? It’s no longer assumed that a family consists of a mother, a father, and concerning the business may be obtained to determine the appropriate or past a customary retirement age and has the ability to keep working the children, where one parent primarily cares for the children and the amount of child support. Legal counsel is crucial in this area. but wishes to scale back or retire; or is earning a substantial income RS: Make sure that you’ve exhausted all other options to attempt to other parent primarily earns the income. Terms have been made gender- at an enjoyable pursuit but could earn more in a much less enjoyable save the marriage. Earnestly participate in marriage counseling. Look neutral and more fl exible. Recently introduced maintenance guidelines TS: For any in-kind benefi ts or payments the parent receives—such as position. These are more nuanced circumstances where the courts will inward to ask, “Is this marriage really dead?” Many divorce practitioners have been refi ned to be fairer and give more predictable results. a company car, reimbursed meals, housing allowance or other benefi ts be called upon to exercise discretion in considering whether to deviate fi rmly believe a “custody fi ght” (now labeled as “a dispute concerning that are signifi cant and reduce the parent’s personal expenses—the from the child support guidelines. allocation of parental responsibilities”), absent exigent circumstances such as mental illness, substance abuse addiction or alcoholism, is TS: The court may also consider any substantial a form of child abuse. Children not only suffer non-income producing assets held by the parent. through the divorce of their parents and the Sometimes, one parent may request that the court upheaval of their family, but also will themselves be require his or her under-employed spouse to interviewed, tested and evaluated by a succession submit to a vocational examination by an expert to of court-appointed strangers. Parents considering He built an exceptional business. determine the amount of income the spouse could divorce also ought to consider the big picture— be earning. The expert’s determination may then be the future of their children and their presence in It’s a good thing his attorney was used in the child support calculation. their lives. If divorce truly is the best course, it’s imperative that parents do everything they can to with him every step of the way. AM: A person who thinks they can avoid child maintain a cordial relationship and an aligned front support by becoming voluntarily unemployed or designed fi rst and foremost to serve their children’s underemployed is misguided. A court will look best interests, including the promotion of the to a person’s historical earnings, qualifi cations, overall physical and emotional health, safety and employment history, assets, and community well-being of the children. standards to impute income to them. In addition, a court can require an unemployed person to seek TS: Since the laws have changed so much recently, employment. The person may have to maintain a the Internet may not be a reliable resource for job diary and regularly report to the court and the keeping up with the changes and nuances of the other parent all the details of his or her daily efforts law. Consult with a divorce attorney who can to obtain employment. explain the laws within the context of the parent’s particular circumstances. The child support law, for Will people paying alimony or spousal support, in example, considers combined income of the parties addition to child support, be affected by the up to approximately $500,000 gross. If a family new law? earns in excess of that, the child support amount may be signifi cantly different than the statutory TS: Possibly. The new law clearly states that in requirements and the court may use its discretion computing the child support amount, the person to determine the amount of support, considering paying spousal support gets to deduct his or her such factors as lifestyle of the family and the unique payments from their gross income in determining expenses of the child. their net income for child support, and the person receiving the spousal support has to include the AM: Each party should speak to a trusted payments in their gross income for purposes of professional in the family law fi eld about how best calculating their net income. to achieve their goals before beginning the process. Chicago: 312-621-9700 North Shore: 847-681-9600 Speak with a mental health professional about how AM: This is a departure from an earlier version of to approach the topic with your children, inform the beermannlaw.com the statute that did not consider spousal support children together with the other parent and maintain when setting the amount of child support. Now, a a cohesive parenting plan, if possible. Prepare and be